Use the Following Statements to Answer the Question

question 13

Multiple Choice

Use the following statements to answer the question:
I.Increasing disclosure of information about the firm enhances transparency in the market.
II.Disclosure enhances the understanding of a firm's actions, hence it increases the efficiency of the market.

• A)I is incorrect, II is correct.
• B)I is correct, II is incorrect.
• C)I and II are incorrect.
• D)I and II are correct.

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Definitions:

Legal Structure

The way a business is organized legally, affecting liability, tax requirements, and regulatory obligations. Common forms include sole proprietorship, partnership, corporation, and LLC.

Startups

Newly established businesses, often in the technology sector, focusing on innovative products or services with a scalable business model.

Workplace Environment

The physical and psychological conditions under which employees work, including aspects such as culture, safety, and available resources, that can impact their performance and satisfaction.

C Corporation

A legal structure for a corporation where the owners or shareholders are taxed separately from the entity, distinguishing the company as an independent legal entity under U.S. federal income tax law.